Define a budget set. Is it the same as a budget constraint?
What will be an ideal response?
Question 2
A gallon of milk costs 4 in Bonland. If the government fixes the price at 3.50, ________.
A) the quantity demanded of milk will fall
B) the quantity of milk supplied will increase
C) a shortage of milk will occur in the market
D) there will be an excess supply of milk in the market